Safe Harbor Statement on LLC Owned property

Forum|Forum|3 years ago
February 3, 2023
1 reply
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We bought a dishwasher for a rental house and would like to use a Safe Harbor, so we don't have to set up depreciation on it. I read that, if the rental property is owned by an LLC, then the LLC must make the election. We do have the property in an LLC, but because myself & my husband are the only two members (in community property state), the LLC is disregarded for tax purposes. We always file on our personal joint form.

I have completed my 1040, but when I type up the Safe Harbor statement, do I use the LLC's name and EIN number or do we use our names and SSNs to match the 1040? (We have an EIN number so we could have the bank account in the LLC name, so it was required by the bank. However, we have never used it for tax purposes.)

Has anyone else run into this 'issue'?

Thanks for your help on this.

Not A Product Question

MAK70

You should use the LLC name/EIN because it is a disregarded entity. This is from the IRS website: "A single-member LLC that is a disregarded entity that does not have employees and does not have an excise tax liability does not need an EIN. It should use the name and TIN of the single member owner for federal tax purposes. However, if a single-member LLC, whose taxable income and loss will be reported by the single member owner needs an EIN to open a bank account or if state tax law requires the single-member LLC to have a federal EIN, then the LLC can apply for and obtain an EIN." (Single Member Limited Liability Companies - IRS)

PamGamAuthor

Thank you. I hope you can see why I was confused. It says to use the single owner's TIN number (SSN) for the return, but the Safe Harbor Statement info says to use the LLC name and number. As long as there is no confusion, I will continue to file on my personal number, but will use the LLC name and EIN for the statement that will be attached to the return. Thanks @MAK70